Despite planting, growing and harvesting most foundational food in the United States, American farmers only glean a tiny amount of consumer food spending, reports Faith Parum of the American Farm Bureau Federation. Department of Agriculture data from 2024 estimates show that "farmers and ranchers received a combined 5.8 cents of every food dollar, down slightly from 5.9 cents in 2023."
The 5.8 cents in profits are divided by sectors. Parum explains, "Crop producers saw their share decline from 2.9 to 2.5 cents, while livestock producers experienced a modest increase from 3 to 3.3 cents." But overall, the trends show that farmers' share of consumer food dollars has decreased over time. In contrast, the largest share of each consumer dollar is spent on food processing and food service.
The shrinking income underscores why increases in agricultural input costs, such as higher fuel or fertilizer prices, can quickly erode farm income and strain farmers already burdened by low commodity prices.
When it comes to food-at-home purchases, farmer and rancher profits gained a "0.5% increase year over year," Parum explains. "In 2024, the farm share of the food-at-home dollar was 18.5 cents, up slightly from 18.4 cents in 2023."
Products that require little processing produce bigger profit margins. Parum reports, "Fresh eggs returned 69.1 cents per dollar to farmers in 2024, up from 65.2 cents in 2023. Beef rose from 49.8 cents to 52.2 cents, and fresh milk increased from 48.1 cents to 50.8 cents."
The overall picture of farming income spotlights the realities of modern food production and distribution, where "most of the economic value is created after products leave the farm," Parum writes.
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